Dangote seals $400m XCMG deal to fast-track refinery expansion to 1.4 million bpd, targeting global industry leadership.
Dangote Group has signed a $400 million construction equipment agreement with XCMG Construction Machinery Co., Ltd., in a move aimed at accelerating the expansion of the Dangote Petroleum Refinery & Petrochemicals from 650,000 barrels per day to 1.4 million barrels per day.
The expansion, expected to be completed within three years, will position the refinery as the largest in the world once fully operational.
Under the agreement, the Group will acquire a wide range of advanced construction equipment to support ongoing and upcoming projects across refining, petrochemicals, agriculture and large-scale infrastructure development. The newly acquired equipment will complement existing assets already deployed for the refinery’s expansion works.
Beyond crude refining, the expansion programme includes a significant boost in petrochemical production. Polypropylene capacity will rise from 900,000 metric tonnes per annum to 2.4 million metric tonnes per annum.
Urea production capacity in Nigeria will be tripled from 3 million to 9 million metric tonnes per annum, in addition to the Group’s 3 million metric tonnes per annum capacity in Ethiopia, further consolidating its position as the largest urea producer globally.
Production of Linear Alkyl Benzene (LAB) will also increase to 400,000 metric tonnes per annum, strengthening supply to the detergent and cleaning agents industry and positioning the Group as Africa’s largest producer of the product. Additional base oil production capacity forms part of the broader expansion plan.
In a statement, the Group described the agreement as a strategic investment designed to deepen its construction footprint and fast-track its ambition of building a $100 billion enterprise by 2030.
“The additional equipment we are acquiring under this partnership will significantly enhance execution across our projects. With this investment, we are positioning ourselves to become the number one construction company in the world,” the statement said.
Dangote Group noted that it is intensifying expansion and regional market development efforts as it advances toward its long-term industrial and infrastructure growth strategy.
